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Public Act 099-0464
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| HB3220 Enrolled | LRB099 10384 JLS 30611 b |
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AN ACT concerning employment.
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Be it enacted by the People of the State of Illinois,
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represented in the General Assembly:
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Section 5. The Illinois Secure Choice Savings Program Act |
is amended by changing Sections 5, 16, 80, 85, and 90 as |
follows:
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(820 ILCS 80/5) |
(This Section may contain text from a Public Act with a |
delayed effective date)
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Sec. 5. Definitions. Unless the context requires a |
different meaning or as expressly provided in this Section, all |
terms shall have the same meaning as when used in a comparable |
context in the Internal Revenue Code. As used in this Act: |
"Board" means the Illinois Secure Choice Savings Board |
established under this Act. |
"Department" means the Department of Revenue. |
"Director" means the Director of Revenue. |
"Employee" means any individual who is 18 years of age or |
older, who is employed by an employer, and who has wages that |
are allocable to Illinois during a calendar year under the |
provisions of Section 304(a)(2)(B) of the Illinois Income Tax |
Act. |
"Employer" means a person or entity engaged in a business, |
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industry, profession, trade, or other enterprise in Illinois, |
whether for profit or not for profit, that (i) has at no time |
during the previous calendar year employed fewer than 25 |
employees in the State, (ii) has been in business at least 2 |
years, and (iii) has not offered a qualified retirement plan, |
including, but not limited to, a plan qualified under Section |
401(a), Section 401(k), Section 403(a), Section 403(b), |
Section 408(k), Section 408(p), or Section 457(b) of the |
Internal Revenue Code of 1986 in the preceding 2 years. |
"Enrollee" means any employee who is enrolled in the |
Program.
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"Fund" means the Illinois Secure Choice Savings Program |
Fund.
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"Internal Revenue Code" means Internal Revenue Code of |
1986, or any successor law, in effect for the calendar year.
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"IRA" means a Roth IRA (individual retirement account) |
under Section 408A of the Internal Revenue Code.
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"Participating employer" means an employer or small |
employer that provides a payroll deposit retirement savings |
arrangement as provided for by this Act for its employees who |
are enrollees in the Program. |
"Payroll deposit retirement savings arrangement" means an |
arrangement by which a participating employer allows enrollees |
to remit payroll deduction contributions to the Program. |
"Program" means the Illinois Secure Choice Savings |
Program.
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"Small employer" means a person or entity engaged in a |
business, industry, profession, trade, or other enterprise in |
Illinois, whether for profit or not for profit, that (i) |
employed less than 25 employees at any one time in the State |
throughout the previous calendar year, or (ii) has been in |
business less than 2 years, or both items (i) and (ii), but |
that notifies the Board Department that it is interested in |
being a participating employer. |
"Wages" means any compensation within the meaning of |
Section 219(f)(1) of the Internal Revenue Code that is received |
by an enrollee from a participating employer during the |
calendar year.
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(Source: P.A. 98-1150, eff. 6-1-15.)
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(820 ILCS 80/16) |
(This Section may contain text from a Public Act with a |
delayed effective date)
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Sec. 16. Illinois Secure Choice Administrative Fund. The |
Illinois Secure Choice Administrative Fund ("Administrative |
Fund") is created as a nonappropriated separate and apart trust |
fund in the State Treasury. The Board shall use moneys in the |
Administrative Fund to pay for administrative expenses it |
incurs in the performance of its duties under this Act. The |
Board shall use moneys in the Administrative Fund to cover |
start-up administrative expenses it incurs in the performance |
of its duties under this Act. The Administrative Fund may |
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receive any grants or other moneys designated for |
administrative purposes from the State, or any unit of federal |
or local government, or any other person, firm, partnership, or |
corporation. Any interest earnings that are attributable to |
moneys in the Administrative Fund must be deposited into the |
Administrative Fund. The State Treasurer shall be the |
administering agency for the Administrative Fund on behalf of |
the Board.
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(Source: P.A. 98-1150, eff. 6-1-15.)
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(820 ILCS 80/80) |
(This Section may contain text from a Public Act with a |
delayed effective date)
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Sec. 80. Audit and reports.
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(a) The Board shall annually submit: (1) an audited |
financial report, prepared in accordance with generally |
accepted accounting principles, on the operations of the |
Program during each calendar year by July 1 of the following |
year to the Governor, the Comptroller, the State Treasurer, and |
the General Assembly. ; and
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(2) a report prepared by the Board, which shall |
include, but is not limited to, a summary of the benefits |
provided by the Program, including the number of enrollees |
in the Program, the percentage and amounts of investment |
options and rates of return, and such other information |
that is relevant to make a full, fair, and effective |
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disclosure of the operations of the Program and the Fund. |
The annual audit shall be made by an independent certified |
public accountant and shall include, but is not limited to, |
direct and indirect costs attributable to the use of outside |
consultants, independent contractors, and any other persons |
who are not State employees for the administration of the |
Program.
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(b) In addition to any other statements or reports required |
by law, the Board shall provide periodic reports at least |
annually to participating employers, reporting the names of |
each enrollee employed by the participating employer and the |
amounts of contributions made by the participating employer on |
behalf of each employee during the reporting period, as well as |
to enrollees, reporting contributions and investment income |
allocated to, withdrawals from, and balances in their Program |
accounts for the reporting period. Such reports may include any |
other information regarding the Program as the Board may |
determine.
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(c) The State Treasurer shall prepare a report in |
consultation with the Board that includes a summary of the |
benefits provided by the Program, including the number of |
enrollees in the Program, the percentage and amounts of |
investment options and rates of return, and such other |
information that is relevant to make a full, fair, and |
effective disclosure of the operations of the Program and the |
Fund. |
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(Source: P.A. 98-1150, eff. 6-1-15.)
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(820 ILCS 80/85) |
(This Section may contain text from a Public Act with a |
delayed effective date)
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Sec. 85. Penalties.
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(a) An employer who fails without reasonable cause to |
enroll an employee in the Program within the time prescribed |
under Section 60 of this Act shall be subject to a penalty |
equal to:
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(1) $250 for each employee for each calendar year or |
portion of a calendar year during which the employee |
neither was enrolled in the Program nor had elected out of |
participation in the Program; or
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(2) for each calendar year beginning after the date a |
penalty has been assessed with respect to an employee, $500 |
for any portion of that calendar year during which such |
employee continues to be unenrolled without electing out of |
participation in the Program.
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(b) After determining that an employer is subject to |
penalty under this Section for a calendar year, the Department |
shall issue a notice of proposed assessment to such employer, |
stating the number of employees for which the penalty is |
proposed under item (1) of subsection (a) of this Section and |
the number of employees for which the penalty is proposed under |
item (2) of subsection (a) of this Section for such calendar |
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year, and the total amount of penalties proposed.
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Upon the expiration of 90 days after the date on which a |
notice of proposed assessment was issued, the penalties |
specified therein shall be deemed assessed, unless the employer |
had filed a protest with the Department under subsection (c) of |
this Section.
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If, within 90 days after the date on which it was issued, a |
protest of a notice of proposed assessment is filed under |
subsection (c) of this Section, the penalties specified therein |
shall be deemed assessed upon the date when the decision of the |
Department with respect to the protest becomes final. |
(c) A written protest against the proposed assessment shall |
be filed with the Department in such form as the Department may |
by rule prescribe, setting forth the grounds on which such |
protest is based. If such a protest is filed within 90 days |
after the date the notice of proposed assessment is issued, the |
Department shall reconsider the proposed assessment and shall |
grant the employer a hearing. As soon as practicable after such |
reconsideration and hearing, the Department shall issue a |
notice of decision to the employer, setting forth the |
Department's findings of fact and the basis of decision. The |
decision of the Department shall become final: |
(1) if no action for review of the decision is |
commenced under the Administrative Review Law, on the date |
on which the time for commencement of such review has |
expired; or
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(2) if a timely action for review of the decision is |
commenced under the Administrative Review Law, on the date |
all proceedings in court for the review of such assessment |
have terminated or the time for the taking thereof has |
expired without such proceedings being instituted.
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(d) As soon as practicable after the penalties specified in |
a notice of proposed assessment are deemed assessed, the |
Department shall give notice to the employer liable for any |
unpaid portion of such assessment, stating the amount due and |
demanding payment. If an employer neglects or refuses to pay |
the entire liability shown on the notice and demand within 10 |
days after the notice and demand is issued, the unpaid amount |
of the liability shall be a lien in favor of the State of |
Illinois upon all property and rights to property, whether real |
or personal,
belonging to the employer, and the provisions in |
the Illinois Income Tax Act regarding liens, levies and |
collection actions with regard to assessed and unpaid |
liabilities under that Act, including the periods for taking |
any action, shall apply.
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(e) An employer who has overpaid a penalty assessed under |
this Section may file a claim for refund with the Department. A |
claim shall be in writing in such form as the Department may by |
rule prescribe and shall state the specific grounds upon which |
it is founded. As soon as practicable after a claim for refund |
is filed, the Department shall examine it and either issue a |
refund or issue a notice of denial. If such a protest is filed, |
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the Department shall reconsider the denial and grant the |
employer a hearing. As soon as practicable after such |
reconsideration and hearing, the Department shall issue a |
notice of decision to the employer. The notice shall set forth |
briefly the Department's findings of fact and the basis of |
decision in each case decided in whole or in part adversely to |
the employer. A denial of a claim for refund becomes final 90 |
days after the date of issuance of the notice of the denial |
except for such amounts denied as to which the employer has |
filed a protest with the Department. If a protest has been |
timely filed, the decision of the Department shall become |
final:
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(1) if no action for review of the decision is |
commenced under the Administrative Review Law, on the date |
on which the time for commencement of such review has |
expired; or
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(2) if a timely action for review of the decision is |
commenced under the Administrative Review Law, on the date |
all proceedings in court for the review of such assessment |
have terminated or the time for the taking thereof has |
expired without such proceedings being instituted.
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(f) No notice of proposed assessment may be issued with |
respect to a calendar year after June 30 of the fourth |
subsequent calendar year. No claim for refund may be filed more |
than 1 year after the date of payment of the amount to be |
refunded.
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(g) The provisions of the Administrative Review Law and the |
rules adopted pursuant to it shall apply to and govern all |
proceedings for the judicial review of final decisions of the |
Department in response to a protest filed by the employer under |
subsections (c) and (e) of this Section. Final decisions of the |
Department shall constitute "administrative decisions" as |
defined in Section 3-101 of the Code of Civil Procedure.
The |
Department may adopt any rules necessary to carry out its |
duties pursuant to this Section. |
(h) Whenever notice is required by this Section, it may be |
given or issued by mailing it by first-class mail addressed to |
the person concerned at his or her last known address.
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(i) All books and records and other papers and documents |
relevant to the determination of any penalty due under this |
Section shall, at all times during business hours of the day, |
be subject to inspection by the Department or its duly |
authorized agents and employees.
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(j) The Department may require employers to report |
information relevant to their compliance with this Act on |
returns otherwise due from the employers under Section 704A of |
the Illinois Income Tax Act and failure to provide the |
requested information on a return shall cause such return to be |
treated as unprocessable.
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(k) For purposes of any provision of State law allowing the |
Department or any other agency of this State to offset an |
amount owed to a taxpayer against a tax liability of that |
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taxpayer or allowing the Department to offset an overpayment of |
tax against any liability owed to the State, a penalty assessed |
under this Section shall be deemed to be a tax liability of the |
employer and any refund due to an employer shall be deemed to |
be an overpayment of tax of the employer.
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(l) Except as provided in this subsection, all information |
received by the Department from returns filed by an employer or |
from any investigation conducted under the provisions of this |
Act shall be confidential, except for official purposes within |
the Department or pursuant to official procedures for |
collection of penalties assessed under this Act. Nothing |
contained in this subsection shall prevent the Director from |
publishing or making available to the public reasonable |
statistics concerning the operation of this Act wherein the |
contents of returns are grouped into aggregates in such a way |
that the specific information of any employer shall not be |
disclosed. Nothing contained in this subsection shall prevent |
the Director from divulging information to an authorized |
representative of the employer or to any person pursuant to a |
request or authorization made by the employer or by an |
authorized representative of the employer.
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(m) Civil penalties collected under this Act and fees |
collected pursuant to subsection (n) of this Section shall be |
deposited into the Tax Compliance and Administration Fund. The |
Department may, subject to appropriation, use moneys in the |
fund to cover expenses it incurs in the performance of its |
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duties under this Act. Interest attributable to moneys in the |
Tax Compliance and Administration Fund shall be credited to the |
Tax Compliance and Administration Fund. |
(n) The Department may charge the Board a reasonable fee |
for its costs in performing its duties under this Section to |
the extent that such costs have not been recovered from |
penalties imposed under this Section.
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(o) This Section shall become operative 9 months after the |
Board notifies the Director that the Program has been |
implemented. Upon receipt of such notification from the Board, |
the Department shall immediately post on its Internet website a |
notice stating that this Section is operative and the date that |
it is first operative.
This notice shall include a statement |
that rather than enrolling employees in the Program under this |
Act, employers may sponsor an alternative arrangement, |
including, but not limited to, a defined benefit plan, 401(k) |
plan, a Simplified Employee Pension (SEP) plan, a Savings |
Incentive Match Plan for Employees (SIMPLE) plan, or an |
automatic payroll deduction IRA offered through a private |
provider. The Board shall provide a link to the vendor Internet |
website described in subsection (i) of Section 60 of this Act.
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(Source: P.A. 98-1150, eff. 6-1-15.)
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(820 ILCS 80/90) |
(This Section may contain text from a Public Act with a |
delayed effective date)
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